Lending Criteria

Lending Area

We lend within the following counties: Cambridgeshire, Norfolk, Suffolk, Essex, Hertfordshire, Buckinghamshire, Bedfordshire and Northamptonshire.

Affordability

Moving forward there will be more emphasis on affordability. We have broken the link between LTV and income. Our income multiples are there for us to use as a guide but the main focus will be on making sure that our borrowers understand their commitment and the loan is affordable.

Please note, for the purpose of the income and expenditure breakdown, the monthly mortgage payment will be calculated at the Society’s Standard Variable Rate, plus 1%. There must also be at least 20% net disposable income left after all outgoings including the mortgage payment has been made.

Income Multiples

Lending Limits

*Where the LTV is 80% or above there cannot be any other properties in the background.

For properties valued below £120,000 please contact your BDM.

Age

Minimum age 18

Maximum age at end of mortgage term 75 (subject to evidence of income beyond normal retirement date)

Mortgage Term

Minimum 5 years
Maximum 30 years

New Builds

• A new build property is classed as a new build if registered within the last two years
• New build flats restricted to a max of 60% LTV
• New build houses restricted to a maximum of 80%
• When applicants are purchasing a new property from a builder any inducements that the builder is offering i.e. cashbacks, deposit paid etc may have an affect on the total amount we will be able to advance. In general the amount of the inducement will be deducted from the ‘purchase price’ and lending will be based on this lower figure
• The valuer should be made aware of any inducements to purchase so that he can comment on them in his report. The valuer will request a CML form, before submitting the valuation report to us

Interest only

• Maximum LTV 75% with a repayment vehicle
• Maximum loan size £500,000
• Where sale of property is the repayment vehicle the LTV is restricted to 66% LTV and there must be £150,000 worth of equity

Buy to Let

• Minimum age 21
• Borrower to have minimum income of £25K - 35K for joint borrowers
• Maximum LTV 75%
• Borrower must currently or have previously owned their own home
• Rental income must be at least 125% of the monthly mortgage interest payment based on either the initial rate or the Buy to Let Variable Rate (which ever is higher)
• The property must be let on an Assured Shorthold Tenancy (AST) agreement. Our normal requirements are for a minimum term of 6 months and a maximum term of 1 year 
• We regret that we are unable to lend on Houses in Multiple Occupation (HMOs)
• Each individual borrower will be limited to a maximum portfolio size of five Buy to Let properties with The Cambridge